BNP Paribas tops the CAC 40 with a 5% rebound after a Barclays target upgrade
The bank posts the largest gain in the CAC 40, in a well-oriented Paris market. The rebound follows a sharp quarterly decline, as a price target has just been raised and a share buyback programme was announced last week.
A rally that reclaims the MM20 and narrows the gap with the long-term averages
BNP Paribas shares gain 5.09% to €92.07 intraday, ahead of Société Générale (+4.84%) and Crédit Agricole (+3.53%), while the CAC 40 rises 1.47%. This rebound puts the price 4.96% above the MM20, at €87.72, after a week of +5.88%. However, it remains 3.19% below the MM50 and 3.46% below the MM200, and the 17.63% quarterly decline remains intact: the move of the day only recovers part of it.
In a buoyant Paris market, the other two banks in the ranking show similar trajectories: Société Générale has fallen 22.25% over three months, Crédit Agricole 19.74%.
Barclays raises its target to €111, the group has launched a €1.3bn share buyback
Barclays today raised its price target from €100 to €111, implying an upside of 20.6% compared with the price of €92.07. Morgan Stanley, for its part, lowered its target yesterday from €129 to €128, while keeping an equal-weight rating.
On the fundamentals, the bank announced on 28 October a €1.3bn share buyback programme. According to the consensus of the analysts surveyed, the share trades at around 7.9 times earnings for the current financial year. It also announced today the early redemption, on 11 December, of AUD 250 million of Tier 2 bonds. The resistance level at €100.20 is the next technical reference identified above the current price.
